Is Caterpillar Stock Worth Buying for 2021?

Caterpillar's (NYSE: CAT) sales and earnings are cyclical -- they always have been and probably always will be. In other words, they go up in tandem with the economy and then down with it. That hasn't been a great quality to have in 2020 as the economy has hit a rough patch, but the reality is Caterpillar is firmly on a path to recovery. Does this make the stock worth buying for 2021?

The investment thesis behind the stock is simple. It's usually a good idea to buy a cyclical stock when it's starting its upswing phase, and that's where Caterpillar is right now. The rationale is that the stock usually starts from a place where investor expectations are low, and then it climbs a wall of worry as the recovery takes shape. In addition, as its revenue growth gathers momentum, analysts are often left scrambling to upgrade forecasts, so you could buy in while others are still waiting to hear what analysts have to say.

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Source Fool.com